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Capitalisation of cash payment above 10000
As per New Finance Act,2017 whether cash payment of more than Rs.10000 incurred for freight inrelation to purchase of capital asset,can be capitalised as per 43(1).
If we do not capitalise in books ,it will be a expense.How to treat it?
Replies (1)
Restriction on capital expenditure done in cash:
As per finance act 2017, from 1st April onwards,cash payments of above Rs.10000 done for purchase of capital asset will be disallowed hence that is not added to the cost of the asset for income tax purpose hence depreciation cannot be claimed.
but we can treat it as an expense.
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